A company\'s income statement showed the following: net income, $141,000; deprec

Question

A company's income statement showed the following: net income, $141,000; depreciation expense, $38,500; and gain on sale of plant assets, $22,500. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $11,100; merchandise inventory increased $26,500; prepaid expenses decreased $7,900; accounts payable increased $5,100. Calculate the net cash provided or used by operating activities.$180,600.

$152,600.

$154,600.

$177,100.

$159,400.

Explanation / Answer

Net Income 141000 Add: Depreciation 38500 Less: Gain on sale -22500 Decrease in Accounts Receivable 11100 Increase in Inventory -26500 Decrease in prepaid Expenses 7900 Accounts Payable increase 5100 Cash provided by operating activities 154600 The correct option is C. $ 154600

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